Sustains healthy volume growth; but rich valuations

Company
09 Aug 2024
5 Min read 
  • Pidilite Industries' stock has been estimated to change from INR 3,168 to INR 2,950 (-7%).
  •  The company's sales are projected to grow at a rate of 4.9%, 9.5%, and 13.1% for the years 2024, 2025, and 2026 respectively.
  •  The company's EBITDA margin is expected to be at an elevated level of 23.9% for FY25.
  •  The management maintains a double-digit underlying volume growth guidance for FY25.
  •  Pidilite Industries' valuation limits the upside potential, leading to a Neutral rating with a target price of INR 2,950.
  •  The company's standalone performance for 1QFY25 saw net sales grow by 6% YoY to INR 315b, with a healthy UVG at 9.6%.
  •  The demand has been subdued, impacted by election-related restrictions and heatwaves, but the management remains optimistic about demand.
  •  The company aims to achieve growth of 1-2x of GDP in its core category and 2-4x in its growth category.
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